El Paso Authorizes US$2.1 million Incentive for Renovation of 1 Texas Tower Building

EL PASO, TX – The El Paso City Council approved incentives for the redevelopment, rehabilitation and renovation of the historic building known as 1 Texas Tower, located at 109 N. Oregon St., owned by Jim Scherr.

The city authorized a $2.1 million performance-based incentive funded by providing rebates on new tax revenue created by the developer’s investment. In addition to the support, the project could receive a 100 percent rebate for 10 years on Hotel Occupancy Tax and State Sales and Use Tax generated by the operations of the State Convention Center Hotel Program.

“We are very pleased with the city’s support to rehabilitate Tower 1 Texas, which will be instrumental in enhancing our downtown,” said Scherr, who plans to renovate the landmark 100-plus-year-old building into a modern, urban Hampton Inn & Suites by Hilton.

Scherr has committed to invest a minimum of $18 million in the project. The first floor will include retail and restaurant space, while the traditional Café Central will remain.

“Our city is fortunate to have the remarkable support of the community and the commitment of the El Paso City Council to the revival of historic buildings. Texas Tower 1 is the seventh renovation of a notable structure supported by local government through financial incentives,” said Deputy City Manager Tracey Jerome.

According to Jerome, the total investment in all historic building revival projects exceeds $224 million. Other historic renovations made possible by City Hall investments include the Plaza Hotel, the Paso del Norte Hotel, the Bassett Tower, the Martin Building, the Stanton House and the Kress Building.

The city is currently working with the private sector on other preservation projects, such as the Hotel De Soto. Jerome said all of the above and current actions demonstrate the City Council’s determination to restore the community’s valuable historic structures.

Source: MEXICONOW Staff